Army is all set to cut 1.5 lac job over next five years.

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NEW DELHI : The Indian Army is all set to cut as many as 150,000 jobs over the next four or five years. By doing so, the army would save between Rs. 5,000 and Rs. 7,000 crore which could be used to bump up its capital expenditure account used to maintain and replenish the stock of weaponry that it currently holds.

The job cuts come as part of an overarching cadre review that seeks to improve the army’s efficiency and prepare it for future wars.
The final report of the review is expected to come in November.
In context: Indian Army cadre review: 150,000 job cuts expected
10 Sep 2018The Indian Army is cutting 150,000 jobs:

The cadre review, ordered on June 21, covers a wide range of issues pertaining to the Army’s efficiency, ranging from merging different verticals to optimize functioning, to the cutting of personnel strength.
The review is being carried out by an 11-member panel led by military secretary Lt. Gen JS Sandhu, and a preliminary presentation about the panel’s proposals is expected by September end. “The line between verticals has got blurred, resulting in duplication of charters and associated manning. There is a definite case for reviewing the number of verticals with the aim of restructuring.
The rationalization operations will be carried out in phases
PhasesThe rationalization operations will be carried out in phases
It’s important to note that the merging of different verticals and rationalizing of personnel roles is going to come in phases.

In other words, around 50,000 troops will be laid off in the next two years, while another 100,000 more personnel might be laid off by 2022-2023. Notably, the rationalization operations could significantly improve the Army’s tooth-to-tail ratio.

Other issues Other issues the review panel is looking into Downsizing apart, the cadre review covers several other issues. Among others, these include the Army’s future needs, streamlining career progression of officers, the deficiency of officers in units, provisions governing leaving of service, etc.

Reportedly, the review panel is considering scrapping the rank of brigadier to ensure smoother career progressions. Additionally, it is also considering replacing division headquarters with integrated brigades.
At the moment, 83 per cent or Rs. 1.28 lakh crore of the army’s total budget goes towards its revenue expenses – day-to-day running costs and salaries. This does not include the army’s annual pension pay out which is independently accounted for. Just 17 per cent of the budget, Rs. 26,826 crore, goes towards capital expenditure – a figure the army finds wholly unsatisfactory. By shedding flab over the next few years and adding up to Rs. 7,000 crore, the army may be able to raise its capital budget to between Rs. 31,826 and Rs. 33,826 crore.

In March, the then Vice Chief of the Army, Lt General Sarath Chand told a parliamentary panel, “The state today is [that] 68 per cent of our equipment is in the vintage category with just about 24 per cent in the current and 8 per cent in the state-of-the-art category.”

What’s more, the modernisation budget of the army, used to procure new systems essential in increasing firepower is woefully inadequate. “Allocation of Rs. 21,338 crore for modernisation is insufficient even to cater for committed payment of Rs. 29,033 crore for 125 on-going schemes and emergency procurements,” said Lt General Chand in his deposition to the parliamentary panel.

Sources in the army have clarified that the proposal being looked at to reduce manpower is still to be accepted and that there is no question of laying off serving officers and soldiers. 60,000 personnel retire from the army every year. If the army were to reduce it manpower, it would do so by cutting down on its annual recruitment spread over a few years.
At the moment, four senior Lieutenant Generals of the Army are preparing reports looking into how the Indian Army, the fourth largest in the world, can be made into a more efficient force.

The reports look at army headquarters restructuring, restructuring of the Indian Army, an officer cadre review and a report looking into the terms and conditions of service of Junior Commissioned Officers (JCOs), soldiers who have a lower status that officers who are fully commissioned.(With Agency Inputs ).